Morocco’s manufacturing sector projects Q2 recovery despite supply chain pressures

Moroccan manufacturers are approaching the second quarter of 2025 with renewed optimism,anticipating production increases across key sectors including automotive,chemicals,food processing,and non-metallic mineral products,according to the latest economic survey of the High Commission for Planning.

The positive outlook emerges despite persistent challenges,with 37% of manufacturing companies reporting first-quarter difficulties obtaining raw materials,particularly foreign-sourced inputs. Financial constraints remain significant,as 23% of industrialists describe their cash positions as “difficult,” rising to 44% in the leather and footwear sector.

First-quarter 2025 production showed modest gains driven by strong performances in chemical and food industries alongside mineral product manufacturing. However,clothing,electrical equipment,and plastic/rubber products sectors experienced declines. Manufacturing capacity utilization held steady at 74%,reflecting relative stability despite headwinds.

Contrasting fortunes characterize other industrial segments. The extractive industry anticipates second-quarter production declines,primarily due to expected phosphate output reductions—a strategic concern for Morocco’s economy. Employment in this sector should remain stable despite production challenges.

The energy sector projects increased production,led by electricity,gas,steam,and air conditioning distribution activities. However,this growth won’t translate into employment gains,with job numbers expected to decrease. The environmental industry,focused on water capture,treatment,and distribution,anticipates stable production and employment levels.

Survey results indicate that despite logistical tensions and financial pressures,certain industrial pillars successfully navigate challenges. Automotive,chemical,and agri-food sectors continue driving recovery momentum. However,treasury fragility across multiple branches,raw material import constraints,and weakening in traditional sectors cast uncertainty over medium-term recovery strength,requiring careful monitoring of evolving industrial dynamics.